DTCC Extends Mutual Fund Services to Non-U.S. Firms

The Depository Trust & Clearing Corp. is allowing non-U.S. financial firms to take advantage of the access, low costs and risk-management protection of its Mutual Fund Services, including Fund/SERV. It is the first time that DTCC has opened up these services to non-U.S. firms.

Our cross-border business has been growing steadily over the last five years, primarily through overseas affiliates of U.S. firms, said Ann Bergin, managing director and general manager of DTCC Wealth Management Services. With pressure to reduce expenses and streamline operations, interest has heightened from overseas funds and firms asking DTCC to extend the reach of our services to their markets.

DTCC charges $0.05 to process a mutual fund through Fund/Serve, an incredible fraction of the $53 to $67 that fund transactions in Europe typically cost, primarily because they are done by hand.

In 2008, Fund/SERV processed 193 million transactions in various asset classes valued at $2.9 trillion, sent by 650 fund complexes.